UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/x/ Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1996, or
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 2-81398A
PARKER & PARSLEY 83-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-1891384
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101,
Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (915)683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes /x/ No / /
Page 1 of 15 pages.
There are no exhibits.
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1996 1995
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of
$367,805 at June 30 and $371,563 at
December 31 $ 368,305 $ 377,780
Accounts receivable - oil and gas sales 176,575 159,325
Accounts receivable - other - 3,695
---------- ----------
Total current assets 544,880 540,800
Oil and gas properties - at cost, based
on the successful efforts accounting
method 17,819,737 17,819,617
Accumulated depletion (13,662,543) (13,494,745)
---------- ----------
Net oil and gas properties 4,157,194 4,324,872
---------- ----------
$ 4,702,074 $ 4,865,672
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 63,376 $ 113,974
Partners' capital:
Limited partners (19,505 interests) 4,145,905 4,252,851
General partners 492,793 498,847
---------- ----------
4,638,698 4,751,698
---------- ----------
$ 4,702,074 $ 4,865,672
========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 425,650 $ 356,986 $ 819,960 $ 737,881
Interest income 4,663 2,624 8,700 4,418
Gain on sale of assets - 162 - 162
Litigation settlement 852,211 - 852,211 -
Salvage income from
equipment disposals 924 - 924 -
--------- --------- --------- ---------
Total revenues 1,283,448 359,772 1,681,795 742,461
Costs and expenses:
Production costs 179,370 213,731 360,765 439,622
General and adminis-
trative expenses 15,016 10,710 27,095 23,285
Depletion 82,863 116,080 167,798 251,475
--------- --------- --------- ---------
Total costs and
expenses 277,249 340,521 555,658 714,382
--------- --------- --------- ---------
Net income $1,006,199 $ 19,251 $1,126,137 $ 28,079
========= ========= ========= =========
Allocation of net
income (loss):
General partners $ 234,036 $ 41,016 $ 276,823 $ 63,757
========= ========= ========= =========
Limited partners $ 772,163 $ (21,765) $ 849,314 $ (35,678)
========= ========= ========= =========
Net income (loss) per
limited partnership
interest $ 39.58 $ (1.12) $ 43.54 $ (1.83)
========= ========= ========= =========
Distributions per limited
partnership interest $ 42.83 $ 5.80 $ 49.03 $ 10.64
========= ========= ========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
General Limited
partners partners Total
----------- ----------- -----------
Balance at January 1, 1995 $ 544,045 $ 4,789,418 $ 5,333,463
Distributions (74,947) (207,510) (282,457)
Net income (loss) 63,757 (35,678) 28,079
---------- ---------- ----------
Balance at June 30, 1995 $ 532,855 $ 4,546,230 $ 5,079,085
========== ========== ==========
Balance at January 1, 1996 $ 498,847 $ 4,252,851 $ 4,751,698
Distributions (282,877) (956,260) (1,239,137)
Net income 276,823 849,314 1,126,137
---------- ---------- ----------
Balance at June 30, 1996 $ 492,793 $ 4,145,905 $ 4,638,698
========== ========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1996 1995
----------- -----------
Cash flows from operating activities:
Net income $ 1,126,137 $ 28,079
Adjustments to reconcile net income to net
cash provided by operating activities:
Depletion 167,798 251,475
Gain on sale of assets - (162)
Salvage income from equipment disposals (924) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (13,555) 30,481
Increase (decrease) in accounts payable (50,592) 33,460
---------- ----------
Net cash provided by operating
activities 1,228,864 343,333
Cash flows from investing activities:
Proceeds from salvage income on equipment
disposals 924 -
Proceeds from sale of assets - 180,619
Additions to oil and gas properties (126) (1,103)
---------- ----------
Net cash provided by investing
activities 798 179,516
Cash flows from financing activities:
Cash distributions to partners (1,239,137) (282,457)
---------- ----------
Net increase (decrease) in cash and
cash equivalents (9,475) 240,392
Cash and cash equivalents at beginning
of period 377,780 100,066
---------- ----------
Cash and cash equivalents at end of period $ 368,305 $ 340,458
========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
NOTE 1.
Parker & Parsley 83-A, Ltd. (the "Registrant") is a limited partnership
organized in 1983 under the laws of the State of Texas.
The Registrant engages primarily in oil and gas development and production in
Texas and is not involved in any industry segment other than oil and gas.
NOTE 2.
In the opinion of management, the Registrant's unaudited financial statements as
of June 30, 1996 include all adjustments and accruals consisting only of normal
recurring accrual adjustments which are necessary for a fair presentation of the
results for the interim period. However, these interim results are not
necessarily indicative of results for a full year.
The financial statements should be read in conjunction with the financial
statements and the notes thereto contained in the Registrant's Report on Form
10-K for the year ended December 31, 1995, as filed with the Securities and
Exchange Commission, a copy of which is available upon request by writing to
Steven L. Beal, Senior Vice President, 303 West Wall, Suite 101, Midland, Texas
79701.
NOTE 3.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from Parker & Parsley
Development L.P. ("PPDLP"). The May 25, 1993 settlement agreement called for a
payment of $115 million in cash by the defendants, and Southmark, the
6
<PAGE>
Registrant, and the other plaintiffs indemnified the defendants against the
claims of Jack N. Price. The managing general partner received the funds,
deducted incurred legal expenses, accrued interest, determined the general
partner's portion of the funds and calculated any inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $6,894,930, or $353.50 per limited partnership interest, in
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of Parker &
Parsley Development Company ("PPDC"), which was merged into PPDLP on January 1,
1995, from its former parent in May 1989, PPDC's interest in the lawsuit and
subsequent settlement was retained by the former parent. Consequently, all of
PPDC's share of the settlement related to its separately held interests in the
wells and its partnership interests in the sponsored partnerships (except that
portion allocable to interests acquired by PPDC after May 1989) was paid to the
former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
7
<PAGE>
summary judgment against Dresser Industries and Baker Hughes for an amount to be
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $669,535 to the limited partners, or
$34.33 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (1)
Results of Operations
Six months ended June 30, 1996 compared with six months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $819,960 from $737,881 for
the six months ended June 30, 1996 and 1995, respectively, an increase of 11%.
The increase in revenues resulted from higher average prices received per barrel
of oil and mcf of gas, offset by a 6% decrease in barrels of oil produced and
sold and an 11% decrease in mcf of gas produced and sold. For the six months
ended June 30, 1996, 28,761 barrels of oil were sold compared to 30,747 for the
same period in 1995, a decrease of 1,986 barrels. For the six months ended June
30, 1996, 98,623 mcf of gas were sold compared to 110,326 for the same period in
1995, a decrease of 11,703 mcf. The decrease in production volumes was primarily
due to the decline characteristics of the Registrant's oil and gas properties.
Because of these characteristics, management expects a certain amount of decline
in production to continue in the future until the Registrant's economically
recoverable reserves are fully depleted.
8
<PAGE>
The average price received per barrel of oil increased $2.92, or 17%, from
$17.51 for the six months ended June 30, 1995 to $20.43 for the same period in
1996 while the average price received per mcf of gas increased 30% from $1.81
during the six months ended June 30, 1995 to $2.36 in 1996. The market price for
oil and gas has been extremely volatile in the past decade, and management
expects a certain amount of volatility to continue in the foreseeable future.
The Registrant may therefore sell its future oil and gas production at average
prices lower or higher than that received during the six months ended June 30,
1996.
A gain on sale of assets of $162 was recognized in 1995 resulting from proceeds
of $180,619 received from the sale of two wells and $10,533 of additional
proceeds receivable from the sale, offset by the write-off of remaining
capitalized well costs of $190,990. There were no sales for the six months ended
June 30, 1996.
Salvage income of $924 was received during the six months ended June 30, 1996
from equipment credits received on two fully depleted wells. No equipment
credits were received for the same period in 1995.
Costs and Expenses:
Total costs and expenses decreased to $555,658 for the six months ended June 30,
1996 as compared to $714,382 for the same period in 1995, a decrease of
$158,724, or 22%. This decrease was due to declines in production costs and
depletion, offset by an increase in general and administrative expenses ("G&A").
Production costs were $360,765 for the six months ended June 30, 1996 and
$439,622 for the same period in 1995 resulting in a $78,857 decrease, or 18%.
The decrease was attributable to less well repair and maintenance costs.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, 16% from $23,285 for the six months ended
June 30, 1995 to $27,095 for the same period in 1996.
Depletion was $167,798 for the six months ended June 30, 1996 compared to
$251,475 for the same period in 1995. This represented a decrease in depletion
of $83,677, or 33%, primarily attributable to the adoption of the provisions of
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
("FAS 121") effective the fourth quarter of 1995 and the reduction of net
depletable basis resulting from the charge taken upon such adoption. Depletion
was computed property-by-property utilizing the unit-of-production method based
9
<PAGE>
upon the dominant mineral produced, generally oil. Oil production decreased
1,986 barrels for the six months ended June 30, 1996 from the same period in
1995, while oil reserves of barrels were revised upward by 167,493 barrels, or
26%.
On May 25, 1993, a final settlement agreement was negotiated, drafted and
finally executed, ending litigation which had begun on September 5, 1989, when
the Registrant filed suit along with other parties against Dresser Industries,
Inc.; Titan Services, Inc.; BJ-Titan Services Company; BJ- Hughes Holding
Company; Hughes Tool Company; Baker Hughes Production Tools, Inc.; and Baker
Hughes Incorporated alleging that the defendants had intentionally failed to
provide the materials and services ordered and paid for by the Registrant and
other parties in connection with the fracturing and acidizing of 523 wells, and
then fraudulently concealed the shorting practice from PPDLP. The May 25, 1993
settlement agreement called for a payment of $115 million in cash by the
defendants, and Southmark, the Registrant, and the other plaintiffs indemnified
the defendants against the claims of Jack N. Price. The managing general partner
received the funds, deducted incurred legal expenses, accrued interest,
determined the general partner's portion of the funds and calculated any
inter-partnership allocations.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G. "Zeke"
Lancaster in the Federal Court lawsuit, filed suit in State Court in Beaumont
against all of the plaintiff partnerships, including the Registrant and others,
alleging his entitlement to 12% of the settlement proceeds. Price's lawsuit
claim for approximately $13.8 million is predicated on a purported contract
entered into with Southmark Corporation in August 1988 in which he allegedly
binds the Registrant and the other defendants, as well as Southmark. Although
PPDLP believes the lawsuit was without merit and has vigorously defended it,
PPDLP has held in reserve approximately 12.5% of the total settlement (the
"Reserve") pending final resolution of the litigation.
A distribution of $91,000,000 was made to the working interest owners, including
the Registrant, on July 30, 1993. The limited partners received their
distribution of $6,894,930, or $353.50 per limited partnership interest, in
September 1993. The allocation of the lawsuit settlement amount was based on the
original verdict entered on October 26, 1990. The allocation to the working
interest owners in each well (including the Registrant) was based on a ratio of
the relative amount of damages due to overcharges for services and materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant, damages for
Materials were allocated between the partners based on their original sharing
percentages for costs of acquiring and/or drilling of wells. Similarly, damages
10
<PAGE>
related to Production were allocated to the partners in the Registrant based on
their respective share of revenues from the subject wells.
As a condition of the purchase by Parker & Parsley Petroleum Company of PPDC,
which was merged into PPDLP on January 1, 1995, from its former parent in May
1989, PPDC's interest in the lawsuit and subsequent settlement was retained by
the former parent. Consequently, all of PPDC's share of the settlement related
to its separately held interests in the wells and its partnership interests in
the sponsored partnerships (except that portion allocable to interests acquired
by PPDC after May 1989) was paid to the former parent.
On September 20, 1995, the Beaumont trial judge entered a summary judgment
against Southmark for the $13,790,000 contingent fee sought by Price, together
with prejudgment interest, and also awarded Price an additional $5,498,525 in
attorneys' fees. On January 22, 1996, the trial judge entered an interlocutory
summary judgment against Dresser Industries and Baker Hughes for an amount to be
determined. Pursuant to their indemnity obligations, the Registrant, Southmark,
PPDLP and other original plaintiffs vigorously protected the rights of both
Dresser and Baker Hughes. Southmark vigorously pursued its appeal of the
judgment, and posted a supersedeas bond using the Reserve as collateral. On
April 29, 1996, all of the parties, including the Registrant and Southmark,
entered into a $7.4 million settlement with Price which fully and finally
resolves all of the litigation and disputes between the parties, including the
Registrant's indemnity obligations to Dresser and Baker Hughes.
Pursuant to the settlement agreement, all of the pending lawsuits and judgments
have been dismissed, the supersedeas bond released, and the Reserve released as
collateral. The managing general partner conducted an accounting of income and
expenses among the parties, and, on June 28, 1996, made a final $9.3 million
distribution to the working interest owners, including the Registrant and its
partners, resulting in a distribution of $669,535 to the limited partners, or
$34.33 per limited partnership interest. The distribution was allocated to the
limited partners using the same methodology as the original $91 million
distribution in 1993.
Three months ended June 30, 1996 compared with three months ended June 30, 1995
Revenues:
The Registrant's oil and gas revenues increased to $425,650 from $356,986 for
the three months ended June 30, 1996 and 1995, respectively, an increase of 19%.
The increase in revenues resulted from higher average prices received per barrel
11
<PAGE>
of oil and mcf of gas, offset by a 3% decrease in barrels of oil produced and
sold and a 17% decrease in mcf of gas produced and sold. For the three months
ended June 30, 1996, 13,819 barrels of oil were sold compared to 14,254 for the
same period in 1995, a decrease of 435 barrels. For the three months ended June
30, 1996, 48,665 mcf of gas were sold compared to 58,964 for the same period in
1995, a decrease of 10,299 mcf. The decrease in production volumes was primarily
due to the decline characteristics of the Registrant's oil and gas properties.
The average price received per barrel of oil increased $4.13, or 23%, from
$18.01 for the three months ended June 30, 1995 to $22.14 for the same period in
1996 while the average price received per mcf of gas increased 45% to $2.46 for
the three months ended June 30, 1996 from $1.70 in 1995.
Costs and Expenses:
Total costs and expenses decreased to $277,249 for the three months ended June
30, 1996 as compared to $340,521 for the same period in 1995, a decrease of
$63,272, or 19%. This decrease was due to declines in production costs and
depletion, offset by an increase in G&A.
Production costs were $179,370 for the three months ended June 30, 1996 and
$213,731 for the same period in 1995 resulting in a $34,361 decrease, or 16%.
The decrease was due to less well repair and maintenance costs.
G&A's components are independent accounting and engineering fees, computer
services, postage and managing general partner personnel costs. During this
period, G&A increased, in aggregate, $4,306 from $10,710 for the three months
ended June 30, 1995 to $15,016 for the same period in 1996.
Depletion was $82,863 for the three months ended June 30, 1996 compared to
$116,080 for the same period in 1995. This represented a decrease in depletion
of $33,217, or 29%, primarily attributable to the adoption of FAS 121 the fourth
quarter of 1995, as discussed previously. Depletion was computed
property-by-property utilizing the unit-of-production method based upon the
dominant mineral produced, generally oil. Oil production decreased 435 barrels
for the three months ended June 30, 1996 from the same period in 1995.
A gain on sale of assets of $162 was recognized in 1995 resulting from proceeds
of $180,619 received from the sale of two wells and $10,533 of additional
proceeds receivable from the sale, offset by the write-off of remaining
capitalized well costs of $190,990. There were no sales during the three months
ended June 30, 1996.
12
<PAGE>
Salvage income from equipment disposals of $924 was received during the three
months ended June 30, 1996 from equipment credits received on two fully depleted
wells. No equipment credits were received for the same period in 1995.
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $885,531 during the six
months ended June 30, 1996 compared to the same period in 1995. This increase
was primarily due to the receipt of proceeds from the litigation settlement as
discussed in Note 3, in addition to an increase in average prices received for
oil and gas sold.
Net Cash Provided by Investing Activities
The Registrant's investment activities during the six months ended June 30, 1996
and 1995 included expenditures related to equipment replacement on various oil
and gas properties.
During the six months ended June 30, 1996, proceeds of $924 were received from
the disposal of oil and gas equipment on two fully depleted properties. For the
same period in 1995, proceeds of $180,619 were received from the sale of two oil
and gas wells.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1996 to cover
distributions to the partners of $1,239,137 of which $956,260 was distributed to
the limited partners and $282,877 to the general partners. For the same period
ended June 30, 1995, cash was sufficient for distributions to the partners of
$282,457 of which $207,510 was distributed to the limited partners and $74,947
to the general partners.
Cash distributions to the partners of $1,239,137 for the six months ended June
30, 1996 included $669,535 to the limited partners and $182,676 to the general
partners, resulting from proceeds received in the litigation settlement as
discussed in Note 3.
13
<PAGE>
It is expected that future net cash provided by operating activities will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.
- ---------------
(1) "Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward looking statements that involve
risks and uncertainties. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward looking statements.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Registrant is party to material litigation which is described in Note 3 of
Notes to Financial Statements above.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
14
<PAGE>
PARKER & PARSLEY 83-A, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PARKER & PARSLEY 83-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 9, 1996 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000743456
<NAME> 83A.TXT
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 368,305
<SECURITIES> 0
<RECEIVABLES> 176,575
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 544,880
<PP&E> 17,819,737
<DEPRECIATION> 13,662,543
<TOTAL-ASSETS> 4,702,074
<CURRENT-LIABILITIES> 63,376
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,638,698
<TOTAL-LIABILITY-AND-EQUITY> 4,702,074
<SALES> 819,960
<TOTAL-REVENUES> 1,681,795
<CGS> 0
<TOTAL-COSTS> 555,658
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,126,137
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,126,137
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,126,137
<EPS-PRIMARY> 43.54
<EPS-DILUTED> 0
</TABLE>
